While annual inflation in the euro area hit the central bank's 2% target last month, traders widely expected a hold in July — in large part due to geopolitical volatility. The U.S. is the EU's biggest bilateral trade and investment partner and the 27-member bloc exported 503 billion euros ($590 billion) in goods to the States last year.

European bond yields rose as the European Union and the U.S. converge on a potential trade deal that would result in lower-than-feared tariffs on the bloc's exports. Germany's benchmark 10-year yield

China's President Xi Jinping calls for mutual trust and stronger communication with the EU as he welcomes the Commission president Ursula von der Leyen to Beijing. The leaders have discussed trade imbalances, tariffs and critical minerals among other issues.

E.U. leaders are in Beijing to mark 50 years of diplomatic relations with China, but they have major disagreements over trade and Russia’s war against Ukraine.

New car sales in Europe fell more than 5% in June, the European Automobile Manufacturers Association (ACEA) said on Thursday, in a reflection of the global challenges faced by automakers.

The European Union dominates critical pharmaceutical imports into the United States, making the 30% tariffs Trump threatened to go into effect Aug. 1 particularly risky.